Members of the nonprofit Hawai’i Medical Service Association (HMSA) were protected by the health plan’s investment income in 2015, after premium revenues fell short of covering health benefits, administrative expenses, and fees and taxes associated with the Affordable Care Act (ACA). Despite an operating loss of $26.8 million in 2015, investment income of $42.7 million helped HMSA end the year with a net gain of $7.6 million after taxes. The small gain is 0.3 percent of HMSA’s premium revenues last year. The company reported its financial earnings to the state Insurance Division today.
“As a responsible health plan, we carefully manage our members’ premiums to make sure they have access to doctors, hospitals, prescription drugs, and medical services when they need them,” said Michael A. Gold, HMSA’s president and chief executive officer. “I’m confident that our members and employer groups got great value in 2015. We’re a nonprofit and every dollar our members put into their health plan premium went back to their health care benefits and the cost of administering those benefits.”
HMSA collected $3 billion in premiums last year and spent $2.7 billion, or about 90 percent of premiums, on health and well-being services for its members. The remaining 10 percent of premiums plus investment income covered $257.3 million in administrative costs plus $74.3 million in ACA fees and taxes.
HMSA had a total of 726,487 members at the end of 2015.
Caring for the people of Hawaii is our promise and our privilege. Working together with employers, partners, and physicians and other health care providers, we promote wellness; develop reliable, affordable health plans; and support members with clear, thoughtful guidance.
HMSA is the most experienced health plan in the state, covering more than half of Hawaii’s population. As a recognized leader, we embrace our responsibility to strengthen the health and well-being of our community.
Headquartered on Oahu with centers and offices statewide to serve our members, HMSA is an independent licensee of the Blue Cross and Blue Shield Association.